SMM Daily Comment On Domestic Rebar Market (Sep 5)

SHANGHAI, Sep 5 (SMM) – Rebar futures fluctuated and fell back to 3,799 yuan/mt at closing, down 0.35% from the previous trading day. Spot market prices moved sideways throughout the day. On the supply side, according to SMM research, the rebar output affected by maintenance this week is estimated to be 671,900 mt, a decrease of 75,300 mt WoW. As many steel mills’ blast furnaces completed maintenance in early September and resumed production one after another, supply will grow. On the demand side, rebar prices fell before the close, and the trading atmosphere cooled down slightly. End users continued the on-demand procurement strategy, and the transactions throughout the day were weak.

In the follow-up, there are signs of marginal improvement in terminal demand, and the supply-demand imbalance was not prominent. Besides, although favorable policies related to real estate were issued frequently, it needs time for this to have a positive impact on steel demand. Considering that the market sentiment is acceptable, steel prices may still fluctuate upward in the later period.